The Russia-Ukraine crisis increased prices of production inputs in the poultry industry, including corn, soy, and fodder, which in turn led to an increase in production costs by approximately 30-40%, according to Ibrahim Wagdy, Deputy CEO of Cairo 3A Group.
Wagdy told Daily News Egypt that 30% of global production of corn and soy comes from Russia and Ukraine, which had been affected by the war.
Cairo 3A, specialized in trading food commodities, announced that it invested EGP 151m in an automated slaughterhouse in Egypt to produce 9 million chickens annually, he added.
Shahd Chicken achieved sales that amounted to more than EGP 400m during the first 8 months of this year, to acquire a market share of 16% as the largest national entity in the food industry sector from the total sales of the fresh, frozen and breaded chicken market in Egypt. The group added that, despite beginning its manufacture about a year ago, Shahd’s sales of breaded chicken exceeded EGP 50m, to acquire a market share of 3%, according to Wagdy.
The sales results were announced in official statements by Cairo 3A Group officials, in light of a visit to the group’s automated slaughterhouse in the Regwa area on the Cairo-Alexandria Desert Road.
Wagdy said that the slaughterhouse is located on an area of 7 feddan, with an average daily production ranging from 45,000 to 50,000 chickens.
Wagdy noted that Shahd Chicken products succeeded in achieving record sales during the first 8 months of this year, with a growth rate of 26% over the same period last year
Cairo 3A was established in 1981 as a group specialized in trading food commodities, based on a clear vision of the group’s officials to transform from a company specialized in agricultural commodities to an integrated group that encompasses all the production cycles associated with extracting premium quality products. Cairo 3A Group has become the largest national entity in the food industry sector. Through its subsidiaries, the group acquires 70% of the starch, glucose, and its derivatives market, 20% of the poultry market, and 4% of the market feed, in which the company is planning to obtain larger shares of the Egyptian market in the near future.